Japan’s hedge funds and banks step up graduate hiring battle

Japan's financial sector is experiencing fierce competition among banks, hedge funds and investment firms in their pursuit of top graduate talent, according to a Bloomberg report. With almost all university graduates finding employment and receiving multiple job offers, financial firms are raising starting salaries and enhancing benefits to attract the best candidates.

The drive comes as stronger market activity and dealmaking boost prospects throughout Japan's financial industry, while demographic constraints limit the supply of workers. Large domestic banks hire hundreds of graduates annually, while international firms and hedge funds target smaller candidate pools through campus programs and early-career initiatives.

Japan boasts a strong demand for new graduates, with 98% of university students finding employment in March 2026, as per the Ministry of Health, Labour and Welfare. Around 600,000 students graduate each year, many with multiple offers. The finance sector, however, remains highly competitive, with five applicants per position, making it the most competitive among eight industries tracked by Recruit Works Institute.

Starting salaries in Japan's finance and insurance sector increased by 7.4% in the current fiscal year, the highest among tracked industries. Several major financial institutions have already raised starting salaries, with Daiwa Securities Group offering starting pay of at least JPY500,000 a month for graduates with advanced skills in data analysis, programming, mathematics, science and technology.

International banks, such as Bank of America and Citigroup, are also ramping up their campus recruitment efforts, with Bank of America requiring bilingual proficiency from its graduates. Hedge funds are increasingly involved in the competition, as the Japanese investment-management industry expands. Point72, for example, selected 20 candidates from 300 applicants for a one-week Tokyo internship program, with two associates later becoming portfolio managers.

The competition extends beyond traditional banks and hedge funds, as private equity, private credit, and real estate firms also intensify recruitment across Japan's asset-management industry, according to Robert Walters Japan's director.